Canadian chain Tim Hortons opened in Pakistan-queue for a day
2023.02.15 14:12
Canadian chain Tim Hortons opened in Pakistan-queue for a day
By Tiffany Smith
Budrigannews.com – Tim Hortons, a Canadian fast food chain, opened its first location in Pakistan this week at a time when the country’s economic crisis was getting worse. Pakistanis are waiting in line for hours to get coffee and pastries from Tim Hortons.
As a result of the government’s implementation of fiscal measures that are required to unlock funds from an International Monetary Fund bailout, Pakistan’s currency has lost more than a quarter of its value against the U.S. dollar in less than a month. Additionally, fuel prices have increased by almost a fifth.
The government only has enough foreign reserves to cover just over three weeks’ worth of imports, and inflation in January reached 27% year-over-year, the highest level in more than a decade.
Since it opened on Saturday in a posh shopping mall in Lahore, hundreds of Pakistanis have flocked to the cafe.
Restaurant Brands International Inc. (RBI) (QSR.TO), a Toronto-based company that also owns Burger King and Popeyes, is the owner of Tim Hortons.
As he stood in line, Ahmad Javed, a medical student who used to frequent Tim Hortons while living in Canada, told Reuters, “Higher prices don’t really matter for the class of people coming here.”
“The middle class is having trouble while the rich people in Pakistan are getting richer,”
A small brewed coffee costs 350 rupees (about $1.30), while a large flavored coffee costs twice as much, according to its online menu. In contrast, the monthly minimum wage mandated by the government is on average 25,000 rupees ($94).
Pakistan, which has a population of more than 230 million people and a GDP of 350 billion dollars, is still a growing market for fast food restaurants. International brands with locations in Pakistan include Gloria Jean’s Coffee, owned by Retail Food Group (RFG.AX), Pizza Hut, and McDonald’s (MCD.N).
According to a statement released by the RBI, Tim Hortons will soon open two more locations in Lahore. The franchise is run by Blue Foods, a company from Pakistan. The opening week’s sales were not disclosed in any detail by either company.
The brand’s popularity on social media is more important to students like Pareeshay Khan than the price of the coffee. I’m here to try the coffee that is the most popular trend on social media. I’m not interested in or aware of the price.”
